Crash Course Business: Entrepreneurship Quiz

What is a key challenge when starting a business according to the introduction?

• Choosing a business name

• Securing adequate funding

• Hiring the right team

• Finding a suitable location

What is a potential disadvantage of seeking funding from the Three Fs?

• They require a detailed business plan

• They might not have enough money to invest

• You might risk personal relationships if the business fails

• They demand high interest rates

What is a major benefit of crowdfunding?

• No need for a business plan

• Immediate cash flow

• Total ownership retention

• Guaranteed success

What is a potential risk of using crowdfunding platforms like Kickstarter?

• You might end up with no funds if the goal isn't met

• You must provide equity to backers

• You have to give up company ownership

• You need to pay high fees

Why might banks be hesitant to provide loans to new entrepreneurs?

• Too many competitors

• Lack of a business plan

• High interest rates

• No proof of stable revenue

What is a benefit of building a relationship with a business loan officer?

• No need for collateral

• Future financial support and advice

• Lower interest rates

• Immediate loan approval

What is a common characteristic of angel investors?

• They require majority ownership

• They are interested in early-stage ideas

• They prefer hands-off investments

• They invest in large corporations

What is a disadvantage of equity crowdfunding?

• It guarantees high returns

• It is only available in urban areas

• It involves giving up partial ownership

• It requires a large initial investment

What is a common feature of venture capitalists?

• They seek high-risk, high-reward opportunities

• They invest small amounts of money

• They focus on low-risk investments

• They require no business plan

What is a potential advantage of receiving a grant?

• No need to repay the money

• Immediate funding

• No application process

• Guaranteed approval